Custodia Bank loses lawsuit over Fed’s rejection of master account application

“Therefore, unless the Federal Reserve has the discretion to reject or reject master account applications, state charter laws will remain the only layer of protection for the American financial system,” the judge wrote. “And in such a scenario, we would break the ‘floor’ between states and politicians to attract businesses by reducing state licensing burdens through loose legislation and allowing minimally regulated entities immediate access to central bank balances and Federal Reserve services. It’s easy to predict ‘competition toward…’